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Xali Gold Signs New Agreement for Sale of El Oro Tailings Project
VANCOUVER, British Columbia, April 15, 2024 (GLOBE NEWSWIRE) -- Xali Gold Corp. (TSXV:XGC) ("Xali Gold” or the “Company”) is pleased to announce that the Compan
About this update from Xali Gold Corp.
[{"type":"text","content":" VANCOUVER, British Columbia, April 15, 2024 (GLOBE NEWSWIRE) -- Xali Gold Corp. (TSXV:XGC) (\"Xali Gold” or the “Company”) is pleased to announce that the Company has signed a Letter of Intent to enter a Purchase Agreement (the “LOI Agreement”) with Kappes, Cassiday & Associates (“KCA”) on the Mexican Mine Tailings Reprocessing Project at El Oro (the “El Oro Tailings Project”) in Mexico. The Letter of Intent is a legally binding agreement. “We are excited to be able to move ahead with our El Oro Tailings Project,” says Joanne Freeze, President and CEO of Xali Gold. “With KCA’s experience in Mexico, and their proprietary recovery process, we anticipate a fairly rapid development timeline. KCA’s recovery process is expected to achieve higher gold and silver recoveries and require less permitting than the previous process proposed by Sun River Gold. As such, we estimate that this new agreement on the Tailings should allow us both to pay outstanding mineral rights fees on the El Oro Project as well as fund exploration at El Oro. El Oro is a district scale gold project encompassing a well-known prolific high-grade gold dominant gold-silver epithermal vein system in Mexico. The project covers 20 veins with past production and more than 57 veins in total, from which approximately 6.4 million ounces of gold and 74 million ounces of silver were reported to have been produced from just two of these veins. The previous agreement with Sun River Gold has been terminated as they were in default of their obligations under that agreement and were given sufficient notice of their default.” In order to earn 100% interest in the El Oro Tailings Project, subject to royalty payments outlined below, KCA has agreed to: Pay Xali Gold US$25,000 upon signing; Pay Xali Gold an additional US$25,000 three months after signing the LOI Agreement; Pay Xali Gold US$100,000 six months after signing the LOI Agreement. Terms of the Royalty Payments are as follows: Once production begins, KCA will pay Xali Gold a gross royalty equal to 4% of the sales income (\"NSR\") received from the gold and silver produced from the El Oro Tailings Project, less any royalties due and payable to others (the Municipality of El Oro), but in no case less than a 3% gross royalty. KCA has the right at any time to buy a 1% royalty from Xali Gold for US$1,000,000, which would lower...